Spotify has been working to make playlists a more engaging aspect of the music streaming experience, potentially making it a feature that could bring in more revenue. So far, the efforts appear to be paying off.
According to co-founder and CEO Daniel Ekthe Sweden-based music streaming service now hosts some 8 billion User-curated playlists where, 725 million Created only since early 2024. This is at the top of a playlist created by Spotify itself.
“Fun fact: The country with the most playlists per user in the world is South Korea, 50% more than any other country,” Ek wrote in a recent LinkedIn post.
We expect Spotify to have more playlists in the future, as the company is now bringing artificial intelligence technology to its playlist functionality.
In April, Spotify announced a beta Artificial Intelligence Playlista tool that allows subscribers to automatically create new playlists using text prompts.
Starting with iOS and Android users in the UK and Australia, subscribers will be able to enter tips like “Indie folk playlist gives my brain a warm hug,” “Relaxing music to help me get through allergy season,” or ” A playlist that makes me feel like the protagonist,” the AI playlist will suggest a list of tracks.
Users can also refine their results with additional hints, such as “more popular” or “less optimistic.”
What’s more, Spotify may be counting on the popularity of premium playlists to attract more users to purchase its higher-tier subscriptions.
according to a report Bloomberg In June, Spotify will launch new playlist features and song management tools as part of a new, pricier package that includes HiFi audio — a core requirement for Spotify users and a long-awaited promise from the streaming service .
It’s unclear whether AI Playlist will be part of this new tier, which is expected to launch later this year, or whether Spotify has other playlist tricks up its sleeve.
What’s clear is that Spotify has been trying to increase the value of its paid subscriptions at a time when streaming services (and their competitors) are raising prices — at least in part at the behest of music companies, which have long argued that music pricing Too low.
Following the first price increase in summer 2024, U.S. individual Premium subscription prices will increase from $9.99 every month to $10.99 – Spotify continues to increase prices, raising its US monthly individual Premium price to $11.99 This spring, equivalent prices in the UK £11.99.
During the company’s earnings call, Ek said Spotify has shifted its focus from building a paying user base to improving margins to ensure profitability, something the streaming giant had been unable to do until recently.
He also said that as the company raises prices, he wants to make sure customers get additional value.
To that end, Spotify has expanded beyond music in recent years into podcasts and audiobooks, which are now part of its premium subscriptions. As of last fall, the Personal Premium plan comes with 15 hours Monthly audiobooks.
Spotify also has a standalone audiobook package available at $9.99 monthly in the US, and has also launched on music-only levels in the US and UK.
However, not all of Spotify’s efforts to boost profits through new layers of differentiation have been embraced by the music industry.
US publishers and songwriters are unhappy with Spotify’s decision this spring to classify its default premium subscription level as a “bundle” because it now includes audiobooks. This is because, according to the U.S. Copyright Office Disc IV Under the deal, streaming services can pay lower mechanical royalties for bundled services than standalone music services.
Spotify’s move resulted in the Mechanical Licensing Collective (MLC) suing the streaming service in U.S. federal court.
One of MLC’s accusations is that Spotify’s new audiobook-only tier is not what it claims to be and actually provides access to music at a lower price than its traditional premium tier.
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